Search found 1182 matches

by msk
Sun Jun 23, 2019 4:09 am
Forum: Investing - Theory, News & General
Topic: Why do large personal portfolios include bonds?
Replies: 165
Views: 12120

Re: Why do large personal portfolios include bonds?

An interesting observation regarding emotions. People here are greatly worried about massive falls in stock prices, the market, but, let's face it, the upside has been and very, very probably be far greater than the downside. You are far more likely to double your NW in the stock market than halve i...
by msk
Sat Jun 22, 2019 2:29 am
Forum: Investing - Theory, News & General
Topic: Good times: 2008 vs Now
Replies: 83
Views: 8185

Re: Good times: 2008 vs Now

Age almost 75. Dipped a toe into the stock market from the mid 1980s. To me, stocks in major markets have ALWAYS appeared over-valued. Still do, but I am 100% in stocks worldwide, nil bonds. Currently 8 figure portfolio. In those days I used to write software as a minor part of my physics/engineerin...
by msk
Fri Jun 21, 2019 5:15 am
Forum: Non-US Investing
Topic: Non-US citizen with US Brokers: Estate Tax risk?
Replies: 80
Views: 28360

Re: Non-US citizen with US Brokers: Estate Tax risk?

My solution at the moment after closing my brokerage accounts at TDAmeritrade since they do not allow me to purchase Ireland situs ETFs: Opened accounts at IB (no clue whether US, UK, Singapore, etc.) Joint with Survivor Rights with my wife, linked to a local bank account (USD not local currency) th...
by msk
Thu Jun 20, 2019 5:56 am
Forum: Non-US Investing
Topic: Concentration risk of networth in one ETF in one broker
Replies: 13
Views: 1143

Re: Concentration risk of networth in one ETF in one broker

I am still confused as to which IB I am dealing with. My phone App says IBKR, but it seems that there are subsidiaries and offices in various centers worldwide. No clue which actually holds my account. When I log in the URL goes dynamic. It's all in cyberspace. When I phone IB, I get a response at w...
by msk
Thu Jun 20, 2019 2:19 am
Forum: Non-US Investing
Topic: Concentration risk of networth in one ETF in one broker
Replies: 13
Views: 1143

Re: Concentration risk of networth in one ETF in one broker

the flat fee for maintenance, even at its worst, is favourable enough vs Saxo % fee. Sound about right? I had Baader Bank (Germany) at one time (trading commission of 0.3% each way, but I felt that did not matter much since I buy once and never sell). So I launched off with a million $. A year late...
by msk
Thu Jun 20, 2019 2:02 am
Forum: Non-US Investing
Topic: Concentration risk of networth in one ETF in one broker
Replies: 13
Views: 1143

Re: Concentration risk of networth in one ETF in one broker

I am with IB and have one account holding VWRD, other accounts holding the equivalents in Black Rock/iShares. So I am diversified with respect to Vanguard, but not brokerage. I remain uneasy with IB in the sense that it may be too good to be true... Nil custody fees, next to nil trading fees since I...
by msk
Tue Jun 18, 2019 6:37 am
Forum: Personal Investments
Topic: how to set up a fund for non US citizen friend?
Replies: 12
Views: 860

Re: how to set up a fund for non US citizen friend?

I do not think the mother's citizenship is very relevant. What is relevant is her tax residency. If she pays tax as a US resident then it's simple to open a US brokerage account at any of the usual brokerages. If she does not pay tax in the USA then it is best to open a brokerage account that enable...
by msk
Tue Jun 18, 2019 1:23 am
Forum: Investing - Theory, News & General
Topic: Why do large personal portfolios include bonds?
Replies: 165
Views: 12120

Re: Why do large personal portfolios include bonds?

More anecdotal stuff. I have a handful of friends in the 8 figure NW and even fewer in the 9 and 10 figure NW. The ones who share (in outline only) their investment strategies with me: 10 figure NW: bonds used for speculation, not as long term investing. Ditto with currencies. Purchases whole hotels...
by msk
Tue Jun 18, 2019 12:26 am
Forum: Investing - Theory, News & General
Topic: A thought on mortgage payoff vs investing
Replies: 27
Views: 2942

Re: A thought on mortgage payoff vs investing

I really have a hard time understanding why anyone would hold bonds paying < 1% real terms rather than pay back his mortgage that is bleeding 3%. At least there is a good probability that his home will appreciate to match inflation. No bonds at all? OK 100% stocks and some bleed into that irritating...
by msk
Tue Jun 18, 2019 12:00 am
Forum: Personal Consumer Issues
Topic: Turkish Airlines ?
Replies: 31
Views: 1885

Re: Turkish Airlines ?

My experience (and my family's): No issues with Economy. You pay cattle class, you get cattle class and pocket your $ balance. Business Class is not on par with top airlines e.g. Gulf Arab airlines or the better far east airlines (but then no other airlines are up at those levels anyway) but you get...
by msk
Mon Jun 17, 2019 9:19 am
Forum: Personal Investments
Topic: What do you think about Vanguard Growth Index Fund for a 22-year-old?
Replies: 36
Views: 3172

Re: What do you think about Vanguard Growth Index Fund for a 22-year-old?

A 100% stocks portfolio can support a 5% withdrawal rate forever Source? Rule of thumb is just 4% and just for retirement (!) I would go with 3% if you really want a permanent withdrawal rate. Also, it may be smart to try to get into a job where (whatever the pay) offers a 401k that can be used to ...
by msk
Sun Jun 16, 2019 3:34 am
Forum: Personal Investments
Topic: What do you think about Vanguard Growth Index Fund for a 22-year-old?
Replies: 36
Views: 3172

Re: What do you think about Vanguard Growth Index Fund for a 22-year-old?

A 100% stocks portfolio can support a 5% withdrawal rate forever, and if history since 1871 is any guide, both the annual withdrawals and the portfolio balances ought to keep up with inflation forever. Choose between Total US market or Total World. I prefer the latter for the decades-long horizon an...
by msk
Fri Jun 14, 2019 11:57 am
Forum: Personal Investments
Topic: Purchasing home with less than 20% downpayment experiences?
Replies: 52
Views: 3367

Re: Purchasing home with less than 20% downpayment experiences?

I put 5% down on 3 homes in 3 different countries, all at the same time. That way I could say honestly that I had nil debt obligations, at that instant. I was 32; the innocence and gullibility of youth... All my friends were making :moneybag And then borrowed to buy furniture so that I could move in...
by msk
Fri Jun 14, 2019 11:41 am
Forum: Non-US Investing
Topic: Just take the default portfolio? (Croatia)
Replies: 8
Views: 633

Re: Just take the default portfolio? (Croatia)

My expectation is that these 3 will behave identically to VWRD. I don't think VWRD has small caps does it? Yes. VT holds some 8000 stocks but VWRD some 3200 stocks. By including WSML in the accumulation trio, I am trying to emulate VT. But frankly, the 3000th holding in VWRD is already so small tha...
by msk
Fri Jun 14, 2019 4:24 am
Forum: Non-US Investing
Topic: Just take the default portfolio? (Croatia)
Replies: 8
Views: 633

Re: Just take the default portfolio? (Croatia)

At age 44 and with a life expectancy of, say, 80+, you have an investment horizon of 40 years. Personally I would just put it all in an ETF that covers the entire world by free-market weight, such as VWRD (ireland based) but it is non-accumulating. Pays about 1.85% net yield. For accumulating I use:...
by msk
Thu Jun 13, 2019 9:29 am
Forum: Personal Consumer Issues
Topic: Retired at 35 and have no friends :(
Replies: 113
Views: 10847

Re: Retired at 35 and have no friends :(

Find yourself a life partner that you enjoy being with. Pay for him/her to live with you so that he/she does not have to work. Sex helps (though not for 80 year-old retirees!). It's the companionship that matters. Go on slow-travel together for several months. If your personalities click, bingo! You...
by msk
Thu Jun 13, 2019 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Job opportunity - KSA/Bahrain
Replies: 66
Views: 5439

Re: Job opportunity - KSA/Bahrain

Pros for the wife: she has school age children, best situation to make friends with other mothers. Query for the OP. Why would anyone employ you rather than a local lad who has been educated stateside (plenty) at a much lower compensation because the employer does not have to convince the local lad ...
by msk
Wed Jun 12, 2019 11:20 pm
Forum: Personal Investments
Topic: Am I being realistic?
Replies: 9
Views: 1797

Re: Am I being realistic?

Your investment horizon is NOT a short 11 years. It is 11 years plus all the lifetime you may have in retirement. Inflation is the big worry, in the USA or in your chosen retirement country. Unfortunately it can be insanely unpredictable, e.g. in the early 1980s in the USA and almost in all developi...
by msk
Wed Jun 12, 2019 11:05 pm
Forum: Personal Finance (Not Investing)
Topic: Best prepaid debit card for a teen
Replies: 23
Views: 1238

Re: Best prepaid debit card for a teen

I found it best to have my kids open accounts in the same bank as myself (jointly with myself if under adult age). Transfers from myself to them is instant and cost free. Normally a debit card on a child's account (or student's account) should cost nil. Talk to your local branch. Major headache with...
by msk
Wed Jun 12, 2019 10:31 pm
Forum: Personal Investments
Topic: Inheritance quadrupled my portfolio--I need advice
Replies: 13
Views: 2952

Re: Inheritance quadrupled my portfolio--I need advice

At age 65 most people would say that they are of "average" health. Consequently you fall into average actuarial statistics and you cannot judge whether it'll be wiser to take SS immediately or postpone it. I would just take it and enjoy the bond-like nature (steady and reliable) of the payments. 11%...
by msk
Tue Jun 11, 2019 2:53 am
Forum: Personal Investments
Topic: I wish to set up a trust that uses IB, what paperwork is needed?
Replies: 1
Views: 315

I wish to set up a trust that uses IB, what paperwork is needed?

Perhaps somebody has been through something similar. I wish to set up a trust fund tax resident outside the USA that makes regular payments (annually or monthly) to my 6 heirs who are tax resident in various countries. They move around a lot, so personal taxes will be each one's personal headache. T...
by msk
Tue Jun 11, 2019 2:18 am
Forum: Personal Finance (Not Investing)
Topic: 22 Years Old - Which credit card to begin with?
Replies: 44
Views: 2984

Re: 22 Years Old - Which credit card to begin with?

2. make sure your utilization rate is 30% or less. If you have one credit card with a $5000 limit, don't have an outstanding balance of more than $1500 at any time. If you are at risk of doing this, sign up for more cards (but don't use them). I use 1% of my available credit because I have 7 credit...
by msk
Mon Jun 10, 2019 8:36 am
Forum: Personal Finance (Not Investing)
Topic: 22 Years Old - Which credit card to begin with?
Replies: 44
Views: 2984

Re: 22 Years Old - Which credit card to begin with?

2. make sure your utilization rate is 30% or less. If you have one credit card with a $5000 limit, don't have an outstanding balance of more than $1500 at any time. If you are at risk of doing this, sign up for more cards (but don't use them). I use 1% of my available credit because I have 7 credit...
by msk
Sun Jun 09, 2019 7:41 am
Forum: Personal Finance (Not Investing)
Topic: How to dramatically cut down housing cost?
Replies: 19
Views: 2927

Re: How to dramatically cut down housing cost?

Downsize to a studio. Be sure you have a top floor apartment in any building with wood floors (most of the older, smaller buildings) or on any floor with a concrete floor (large, multi-storey blocks). My worst experience as a grad student was ski season in a small apartment building (wood floors!) w...
by msk
Sun Jun 09, 2019 2:47 am
Forum: Personal Finance (Not Investing)
Topic: How to preserve $10M+ in wealth owned by unsophisticated people?
Replies: 82
Views: 14508

Re: How to preserve $10M+ in wealth owned by unsophisticated people?

Perhaps relating my situation and "solution" might help. Age mid 70s, Net Worth 8 figures built up from RE and currently in 100% stocks, 6 heirs, none of whom I can trust with a 7 figure windfall. So somewhat familiar to OP's situation after his probable inheriting. Three decades ago I was 100% in R...
by msk
Sat Jun 08, 2019 4:30 am
Forum: Personal Consumer Issues
Topic: Do we need a realtor? First time home buyer, buying from landlord
Replies: 26
Views: 2136

Re: Do we need a realtor? First time home buyer, buying from landlord

I had a land purchase a few years ago where the owner reneged on paying a commission to the agent because there was no contract between them; and he was just a nasty man. He did inform me that he was not going to pay any commission and suggested that I pay it "because of the very attractive price" I...
by msk
Wed Jun 05, 2019 12:40 am
Forum: Personal Consumer Issues
Topic: Do you drive old cars for long distance travels?
Replies: 105
Views: 6986

Re: Do you drive old cars for long distance travels?

If your car is at least 10 years old and with 100k miles, do you still use it for long distance travels (more than 5 hours of driving)? I treated my Lexus LS460 at ten years old and 120+k miles exactly the same as a brand new car, and it always rewarded me with excellent behaviour. Depends on the c...
by msk
Wed Jun 05, 2019 12:29 am
Forum: Personal Consumer Issues
Topic: Do we need a realtor? First time home buyer, buying from landlord
Replies: 26
Views: 2136

Re: Do we need a realtor? First time home buyer, buying from landlord

Bought a house sight unseen, just photos on the web and had my adult daughter visit it. Had her appoint a lawyer and an inspector. Negotiated the price by email (I was abroad) and wired the $, all cash. Eight years later, all is fine. Repairs/maintenance/improvements have cumulated to less than $50k...
by msk
Wed Jun 05, 2019 12:16 am
Forum: Personal Finance (Not Investing)
Topic: Should All Grandkids Be Treated as Equal Members of Same Class?
Replies: 104
Views: 8036

Re: Should All Grandkids Be Treated as Equal Members of Same Class?

One way that I find tempting: Invest whatever is left of my and DW's estate in Vanguard World by free-market weight (VT) 100% stocks in a trust fund (or "equivalent" if Vanguard fades away in the year 2049...). Cash out 5% each year (almost 2% comes in as a dividend anyway) and hand out to all our g...
by msk
Tue Jun 04, 2019 3:39 am
Forum: Personal Finance (Not Investing)
Topic: Should All Grandkids Be Treated as Equal Members of Same Class?
Replies: 104
Views: 8036

Re: Should All Grandkids Be Treated as Equal Members of Same Class?

My mother has 5 children, 14 grandkids (was 15 but one died), 20 great grandkids, 2 great great grandkids. Oh, and she has ongoing charities. She has appointed me the executor of her will :confused
by msk
Mon Jun 03, 2019 8:04 am
Forum: Non-US Investing
Topic: Retirement Planning for someone working multiple countries
Replies: 6
Views: 622

Re: Retirement Planning for someone working multiple countries

I worked in a number of countries. Most countries taxed me for income earned only in that country while I was tax-resident there but not domiciled there, hence all my investments were offshore and relatively untaxed. Becoming tax-resident in the USA imposes a huge burden that I never had to face. Ne...
by msk
Mon Jun 03, 2019 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Invited to vacation house then surprised with expenses—what now?
Replies: 64
Views: 3706

Re: Invited to vacation house then surprised with expenses—what now?

Pull your nose out of it and let your spouse handle everything. Getting the family (his family) together is relevant to him, not so much to you. Maybe he thinks it was all worth it to let his kids know their cousins better, maybe not. Obviously you are in the maybe-not camp. I can appreciate your ex...
by msk
Sun Jun 02, 2019 6:18 am
Forum: Personal Consumer Issues
Topic: Santa Fe real estate
Replies: 64
Views: 4113

Re: Santa Fe real estate

You need to think bigger. You can get 57000 acres in Australia for $866k AUD: https://naiharcourts.com.au/Property/310170/QTW091114/57000ac-Hippong-Station Anyone wanna go halfsies with me? I don’t know the first thing about running a ranch or cattle but what the hell, I can’t resist a deal on a sm...
by msk
Fri May 31, 2019 4:37 am
Forum: Personal Investments
Topic: Student loan question VS investing yet again
Replies: 5
Views: 454

Re: Student loan question VS investing yet again

Save and invest 30% of after tax income. Yours: 88k = after tax 65k? Save and INVEST $20k. Your student loan "pays" 6.5% as an investment. Where else can you get such a guaranteed return? No? Pay it off asap. Rest of the 20k should go into tax sheltered accounts. NB the interest you pay on your stud...
by msk
Fri May 31, 2019 2:48 am
Forum: Personal Finance (Not Investing)
Topic: Older retirees: Are your expenses lower now than in early retirement?
Replies: 49
Views: 6238

Re: Older retirees: Do you have lower expenses now than you did in early retirement?

20 years retired, age 75. It's all psychological. You have xS coming in monthly that you are willing to spend. if x goes up, you will spend more, if it stays static, you will spend less on unessentials, like maid service or the lawn mowing. My x was my pension, that from my first day of retirement I...
by msk
Fri May 31, 2019 2:34 am
Forum: Personal Finance (Not Investing)
Topic: Can I afford this 2.3 million dollar home?
Replies: 252
Views: 21657

Re: Can I afford this 2.3 million dollar home?

We pass through life only once. Save and invest 30% of after tax income. Have no guilt about spending the rest. Hi-end TVs come in at 2x the price a year or two later, for the same TV. Why always be one year behind the technology curve if TVs are important to you? Jewelry and flowers have no practic...
by msk
Thu May 30, 2019 7:52 am
Forum: Personal Finance (Not Investing)
Topic: Can I afford this 2.3 million dollar home?
Replies: 252
Views: 21657

Re: Can I afford this 2.3 million dollar home?

My rule-of-thumb for the last 50 years: never buy a home worth more than 3x income or 2.5x combined income. Yes, you can afford it. But my most important rule-of-thumb: save and invest at least 30% of after tax income. Paying off principal on your home mortgage qualifies, but NOT the payment of inte...
by msk
Thu May 30, 2019 7:34 am
Forum: Investing - Theory, News & General
Topic: 2% withdrawal rate
Replies: 182
Views: 12785

Re: 2% withdrawal rate

This is a portfolio using Shiller's reconstructed SP data from 1871 to the present, 100% stocks, undergoing a withdrawal of 5% of (portfolio+dividends less 15% tax on dividends) balance each year and deflated with whatever the CPI was in each month. I assumed the dividends were taxed at 15% I.e. the...
by msk
Wed May 29, 2019 3:45 am
Forum: Personal Consumer Issues
Topic: Printing quality pictures taken from phone?
Replies: 19
Views: 1163

Re: Printing quality pictures taken from phone?

My wife has taken some great photos of our kids on her phone. I would love to print them 8x10 and frame them. But I’ve always found that smartphone pictures don’t print well. Does anyone have any recommendations for a service or program that I could use that would enhance the quality of these pictu...
by msk
Wed May 29, 2019 3:03 am
Forum: Personal Finance (Not Investing)
Topic: Lump sum versus annuity help
Replies: 22
Views: 1208

Re: Lump sum versus annuity help

I spent a few years on the Board of Trustees for a pension fund. Save yourself a lot of anguish in decision making by recognizing the following: 1. Any pension fund has done its homework using actuaries with much better precision and data than you ever could on your own. Waste of time trying to seco...
by msk
Tue May 28, 2019 5:06 am
Forum: Personal Finance (Not Investing)
Topic: Blended Family Issues and Keeping Things Equal
Replies: 38
Views: 3277

Re: Blended Family Issues and Keeping Things Equal

Personally I would simply divide everything up into equal parts: one for current wife and one for each of your children (currently 3). The baby does have a working mother able to raise her to maturity so probably can survive well without extra apportioning. The older two kids need a trustee(s) to be...
by msk
Tue May 28, 2019 4:05 am
Forum: Personal Consumer Issues
Topic: Central AC not Working Properly?
Replies: 37
Views: 2329

Re: Central AC not Working Properly?

I have an aging central A/C system. It is 14 years old. Recently, I had a refrigerant leak supposedly repaired and the system was recharged (with Puron - the newer stuff). Today it was 85 F-87 F (and sunny) outside and the AC would not reduce the 2nd floor temperature below 73 F when running consta...
by msk
Mon May 27, 2019 1:45 pm
Forum: Personal Consumer Issues
Topic: Central AC not Working Properly?
Replies: 37
Views: 2329

Re: Central AC not Working Properly?

I have an aging central A/C system. It is 14 years old. Recently, I had a refrigerant leak supposedly repaired and the system was recharged (with Puron - the newer stuff). Today it was 85 F-87 F (and sunny) outside and the AC would not reduce the 2nd floor temperature below 73 F when running consta...
by msk
Mon May 27, 2019 1:24 pm
Forum: Investing - Theory, News & General
Topic: Do you have an allocation more conservative than 50/50 ?? What is it? Why? How Bogleheads are getting it done.
Replies: 135
Views: 12015

Re: Do you have an allocation more conservative than 50/50 ?? Why?

Reasons: - Won the game (no need to take more risk) - Live off pensions (again no need to take risk) - Realized heirs will get millions (yet again no need to take risk) All above apply to me, but I am 100% equities. Why? I would like to donate more to charity, but if the market tanks I'll just dona...
by msk
Sat May 25, 2019 8:29 am
Forum: Personal Consumer Issues
Topic: Windows for Noise Reduction
Replies: 36
Views: 2584

Re: Windows for Noise Reduction

+1 Best noise-blocking windows I have ever come across were at the Heathrow Hilton, London UK. They were simple, triple glazed and non-openable. Dead quiet, but then the walls were also brick and masonry. One can easily replicate by using the usual double-glazed panels with UPVC frames and a storm p...
by msk
Sat May 25, 2019 8:22 am
Forum: Personal Consumer Issues
Topic: What is the best way to test drive cars?
Replies: 39
Views: 2943

Re: What is the best way to test drive cars?

Over the past 50 years I test drove only the used cars I bought, never a new one. Each to his own. Most recent car I bought was a Mercedes S560. Walked into the showroom, grabbed a salesman, handed him my desired specs and asked him to place the order. Collected the car 3 months later. Then I had to...
by msk
Sat May 25, 2019 7:53 am
Forum: Personal Consumer Issues
Topic: London / UK Summer Trip
Replies: 57
Views: 3190

Re: London / UK Summer Trip

Last time I went with teenage kids to London we got an apartment within walking distance to St Paul's Cathedral. Turned out very convenient for touristy stuff. I had worked in London for a few years previously so this trip was mainly for the family. Try AirBnB. 8 days is about right to do London in ...
by msk
Fri May 24, 2019 7:01 am
Forum: Investing - Theory, News & General
Topic: just a general comment about "too conservative" investors here
Replies: 151
Views: 14671

Re: just a general comment about "too conservative" investors here

One perspective from somebody who considers himself "moderately conservative". Don't we all? :wink: My working life has been between the early 1970s to end of the last century; early retirement at 55. My investing life was from the early 1970s till today, obviously borrowed to the hilt in the early ...
by msk
Thu May 23, 2019 4:15 am
Forum: Investing - Theory, News & General
Topic: just a general comment about "too conservative" investors here
Replies: 151
Views: 14671

Re: just a general comment about "too conservative" investors here

OP: your views came with having experienced the pains of losses. Why would a youngster at age 30 believe us oldies without having gone through the pains himself? There are a million stories out there of individuals who got fabulously rich through risky investments, be it stocks or RE or bitcoin. Whe...
by msk
Wed May 22, 2019 7:53 am
Forum: Investing - Theory, News & General
Topic: Any option traders?
Replies: 41
Views: 2982

Re: Any option traders?

I used to. Quickly learnt that to feel good, I needed to Sell rather than Buy Puts and Calls. After many years I settled on selling one-year SPY Puts if I needed to add to my holdings and selling one-year SPY Calls when the market looks very richly priced, like now. The premium you collect is around...